Sanlam Corporate has reported that since the implementation of the two-pot retirement system it has received more than 20,000 savings component claims on their portal and app for the first two working days of September
The company said that this amount of claims is more than the monthly average of 7,000 to 8,000 retirement, withdrawal, or retrenchment claims that they usually process.
The average amount that people were claiming from their savings component is R20,000.
Nzwa Shoniwa, Managing Executive, Sanlam Corporate said that people are using their retirement savings to make ends-meet and one of the key objectives of the two-pot system is to provide South Africans with access to emergency funds when they really need it.
According to Sanlam, the high demand on their portal and app during the initial days of the rollout of the two-pot retirement system shows a strong interest in the new retirement system.
The app and portal has seen an increase new registrations since September 3, 2024, 750% in comparison to the usual daily sign-ups.
Sanlam also experienced a 750% increase in call volumes during the first few days of September, compared to previous years. The demand peaked on September 4, 2024 with close to 7,500 calls and WhatsApps.
Tax
Sanlam said that over the past two days, tax directives that were submitted and received back from the South African Revenue Services (Sars) without delays.
Around 1% of tax directive requests have been rejected by Sars, and for 13% of requests, Sars issued an IT88.
Sars will issue an IT88 if a pension fund member has outstanding tax from a previous period or has not submitted one or more annual tax returns for their personal taxes, according to Sanlam.
The outstanding amount will then be deducted from the savings component claim before the member has been paid out.
Financial advice
Sanlam is encouraging pension fund members to seek advice so they can a complete understanding of the impact of early withdrawals on their retirement savings.
Anna Siwiak, head of Product Development, Sanlam Umbrella Solutions said that the company has been proactive in responding to the challenges presented by the high volume of claims.
“We upgraded our infrastructure and continue to monitor and test the system to ensure a smoother experience for members in the future,” Siwiak said.
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